Bitcoin ETFs drop below $100B AUM as $2.7B exits in 14 days

Spot Bitcoin and Ethereum ETFs have shed nearly $2.7 billion in cumulative net outflows over the past two weeks, with US spot Bitcoin funds alone recording roughly $1.26 billion in redemptions last week — the heaviest weekly drain since late January — and pushing total category AUM below the $100 billion mark. Spot Ethereum products extended their outflow streak to ten consecutive sessions with $471 million in combined redemptions across the same window, per SoSoValue data.

Why it matters

The selling is happening into strength, not weakness: Bitcoin traded near $80,000 through the rotation, and the seven-day average of US spot ETF net flows dropped to -$88 million per day, the sharpest daily pace since mid-February. Timothy Misir, head of research at BRN, framed the distinction bluntly — redemptions during a downturn usually signal forced de-risking, but redemptions into a rebound suggest portfolio managers are rebalancing rather than capitulating. SoSoValue tied the move to a fundamental repricing of rate-cut expectations: the $2.9 billion in ETF inflows that landed across March and April was built on the assumption the Fed would cut through 2026, but sticky inflation prints and Kevin Warsh's confirmation as Fed chair have flipped the script. CME futures now imply a 39% probability of a 2026 rate hike, while Polymarket prices a 62% chance of zero cuts for the full calendar year.

Market impact

While Bitcoin and Ethereum ETFs bled, single-asset products tracking Solana, XRP, and Hyperliquid's HYPE token pulled in roughly $226 million over the same window — a clear rotation rather than a broad exit. Alvin Kan, COO at Bitget Wallet, called the divergence an internal reallocation: allocators are pulling back from macro-sensitive large caps while deploying into ecosystems tied to specific operational milestones — Solana's high-throughput DeFi expansion, Hyperliquid's derivatives infrastructure, and XRP's cross-border payment rails.